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344 CONSTRUCTION APPLICATIONS
and scheduling only (i.e., agency) as well as construction managers who are
responsible for the entire project (i.e., at risk) are included as general contractor-
type establishments. Establishments of the general contractor type frequently
arrange construction of separate parts of their projects through subcontracts with
other construction establishments.
Establishments primarily engaged in activities to produce a specific component
(e.g., masonry, painting, and electrical work) of a construction project are commonly
known as specialty trade contractors. Activities of specialty trade contractors are usual-
ly subcontracted from other construction establishments, but especially in remodeling
and repair construction, the work may be done directly for the owner of the property.
Construction offers more opportunities than most other industries for individuals who
want to own and run their own business. The 1.9 million self-employed and unpaid
family workers in 2006 performed work directly for property owners or acted as con-
tractors on small jobs, such as additions, remodeling, and maintenance projects. The
rate of self-employment varies greatly by individual occupation in the construction
trades, partially dependent on the cost of equipment or structure of the work. The con-
struction industry provides services in the following areas:
■ Heavy construction
■ Plumbing, heating, and air-conditioning
■ Painting, paper hanging, and decorating
■ Mobile home construction
■ Prefabricated wood buildings and components
■ Masonry, stonework, tile work, and plastering
■ Carpentering and floor work
■ Concrete work
■ Roofing and sheet metal work
■ Glass and glazing work
■ Wrecking and demolition
Establishments primarily engaged in activities to construct buildings to be sold
on sites that they own are known as operative builders, but also may be known as
speculative builders or merchant builders. Operative builders produce buildings in
a manner similar to general contractors, but their production processes also
include site acquisition and securing of financial backing. Operative builders are
most often associated with the construction of residential buildings. Like general
contractors, they may subcontract all or part of the actual construction work on
their buildings.
There are substantial differences in the types of equipment, work force skills, and
other inputs required by establishments in this sector. To highlight these differences
and variations in the underlying production functions, this sector is divided into three
subsectors.
Subsector 236, construction of buildings, comprises establishments of the general
contractor-type and operative builders involved in the construction of buildings.